Many big companies participate in the acquisition of TikTok in the US

Bloomberg news site reported on September 16 that a group of US investors including Oracle Corp., venture capital fund Andreessen Horowitz and private equity firm Silver Lake Management LLC are expected to acquire the US operations of social app TikTok.

The framework agreement was revealed after two days of US-China trade talks in Madrid, Spain, and will be discussed directly by President Donald Trump with Chinese President Xi Jinping this week.

Under the initial agreement, ByteDance's US parent company's stake in TikTok would be reduced to below 20% to comply with a 2024 US law that forces the Chinese company to divest or face a ban.

New investors will hold 50% of the shares, while the existing US investor group will hold about 30%.

US users will be moved to a new platform with Oracle continuing to provide cloud computing services. ByteDance will license the recommendation algorithm that is at the core of TikTok's success.

TikTok’s US business is estimated to be worth $35 billion to $40 billion, but details of the purchase price and the distribution of shares among investors remain unclear. The deal is similar to a proposal that was close earlier this year but was postponed by China after President Donald Trump imposed heavy tariffs on Chinese goods in April.

The new deal not only allows TikTok to continue operating in the US, but also untangles the US-China trade relationship. President Trump affirmed that there is “a deal” and will confirm it with President Xi Jinping in a call on September 19.

The Trump administration has extended the deadline for ByteDance to divest until December 16, even though the law only allows one 90-day extension, sparking legal controversy.

Treasury Secretary Scott Bessent said the deal is meant to ensure US national security while still meeting China's interests.

If completed, this would be a major turning point for the fate of China's most valuable private company and the social networking app favored by 170 million young Americans./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/nhieu-cong-ty-lon-tham-gia-thuong-vu-mua-lai-tiktok-tai-my-post1062313.vnp